Today, Takahashi confirmed that Microsoft's upcoming 65nm
die shrink for the Xbox 360's microprocessor and GPU is codenamed
"Falcon." Takahashi reports that Microsoft is currently
qualifying the new Falcon chips along with a redesigned motherboard. The
65nm-equipped Xbox 360s are due to hit store shelves this fall.

The new chips are not only smaller and roughly 50 percent
cheaper to produce than their 90nm counterpart, but they are also cooler.
Cooler-running chips coupled with a revised cooling solution would go a long
way to eradicating the Xbox 360’s fatal flaw: the Red Ring of Death (RROD).